Coulters Predict: The Edinburgh Property Market 2022

22 weeks ago
16 minute read
By Sarah Howden

What. A. Sales. Boom. When it came to buying and selling property in Edinburgh this year, it’s safe to say it’s been a great one for the market. Soaring prices and speedy sales meant that the capital’s homes were seriously hot property. 

In fact, according to our friends at estate agency and solicitors Coulters, housing prices in Scotland outperformed the UK rate of 11.8% reaching 12.3% by the end of September…with some detached houses enjoying a near 17% hike in price in just one year.

As we fast approach 2022, we chat to Coulters’ senior property valuer, and Egg, Francesca Hill, about what lies ahead in the housing market next year. From hot buys and top locations to moving fast and staying put, Francesca reveals her top insights and tips. 

ON THE UP

There’s no escaping the fact that 2021 was a pretty epic year for the housing market in Edinburgh. According to the ESPC, the average selling time was just 16 days with Coulters seeing sought-after properties sell for an eye watering 40% over valuation, sometimes in just over a week. And, it seems, it’s set to continue in 2022.

“It’s definitely been a seller’s market in Edinburgh this year,” says Francesca. “Next year we won’t see the same level of activity, as it’s just not sustainable, however we anticipate that house prices in Edinburgh and the Lothians will continue to rise. It will just be more subdued.”

But before home owners panic and buyers rejoice, there are still healthy price rises expected.

“We forecast that the volume of sales will be down slightly in 2022, but good homes with outdoor space will continue to sell for a premium. In the capital especially, buyer demand will continue to outweigh supply which will, in turn, fuel price increases which we estimate to be up to 10%.”

Francesca’s top tip: It will still be a seller’s market in 2022 so buyers can make themselves as attractive as possible by selling first to avoid the dreaded chain. Or, be as flexible with move in dates as possible, to allow the seller the chance to move on.   

SIZE MATTERS

Throughout 2021, there was a race for space as, post-pandemic, priorities had changed. New hybrid working models meant that location was no longer an issue. Instead, buyers could pursue dream homes and a different way of life in suburban, semi-rural and rural areas.

“Detached property prices were up 16.5% this year,” reveals Francesca. “And this demand for space is set to continue next year too. At Coulters, the team saw demand for additional space to work, extra living space to enjoy and outdoor garden space, soar – and we’re already inundated with enquiries for the same in 2022.”

She adds: “I see no end to offers well in excess of valuation and, for attractive properties which are well located, these will continue to sell at a high premium in 2022.”

But don’t think bigger is always better – smaller properties are finally having their moment too. In fact, Francesca believes in 2022 there will be a resurgence in the demand for flats in Edinburgh.

“City centre flats, which made a recovery this year of 9%, are set to enjoy further growth in 2022 as retail, hospitality and tourism continues to improve,” she explains. “The re-introduction of government guaranteed 95% LTV mortgages will also further boost this type of property as first time buyers look to get onto the property ladder.”

Francesca recommends areas including Musselburgh, Newhaven, Haymarket, Dalry, Broughton and Portobello for affordable first-time purchases that are also good investments longer term. “We anticipate strong growth in these areas due to investment and developments so it’s worth considering now when prices are lower.”

Francesca’s top tip: If you’re a first time buyer, speak to an independent Mortgage Advisor at the start. They can run figures for you and let you know what your maximum borrowing and the lender most suited to you. Then, make your wish list in order of priority. Once you know your criteria then look into areas that reflect your affordability.

LOCATION LOCATION LOCATION

Which areas of Edinburgh and the Lothians are set to be hot property next year? According to Francesca there’s quite a few…especially in East Lothian.

“North Berwick will continue to be incredibly sought after, particularly for families and those looking for a different pace of life,” she explains. “Dunbar, which offers seaside living and transport links without the North Berwick price tag, is also enjoying a spike in popularity.”

In fact, demand is so high in East Lothian that Coulters is on the move too. January will see the launch of its very own dedicated Property Hub on North Berwick High Street. Here, their local property experts will be on hand to help buyers find their perfect home – including those not on the market yet.

“Portobello is also set to be a sought-after area next year. It offers seaside living with a strong community feel; the area is bursting with local amenities and independent businesses too. The best part is the quick and easy access to the city centre and countryside.”

And for those looking for a trendy Stockbridge vibe without the price tag, Broughton is the location to look at.

“It definitely has the cosmopolitan atmosphere of the New Town, with a plethora of great local bars, restaurants and boutiques. With the arrival of the St James Quarter just a stone’s throw away, it’s a great affordable destination and one we seeing increasing in popularity next year.

Francesca’s top tip: It’s all about location, so do your homework first. Visit areas, spend time there to get a feel for the location and whether it’s ‘you.’ Don’t just buy because of the property.

DON’T DELAY

It’s easy to assume the market slows in the winter months. However, whether you’re a buyer or seller, the first few months of 2022 are ideal to make a move.

“If you’re waiting for a drop in house prices in 2022, don’t,” advises Francesca. “We’re predicting an overall house price increase across Edinburgh and the Lothians of up to 10%.

“Instead, you may be better taking the leap earlier and making the most of the ultra-low mortgage rates that are available now. It’s also likely that these current low mortgage rates will continue to motivate buyers to make the move in early 2022, supporting further price growth. So, if you’re looking to move, don’t delay.”

She adds: “If inflation continues to rise, it’s likely that the Bank of England will raise interest rates which will affect affordability. This concern could well stimulate sales in Q1 as buyers look to secure fixed rates mortgages and lock in rates.”

Get those sale boards ready!

Francesca’s top tip: First impressions matter so spend time getting your home sale ready. Declutter and depersonalise. Envision how you would like it to be photographed in your schedule. We have several different solutions to assist you – our team are experts at this and can advise on giving your home TLC to help it sell fast…and for its best price.

LOVE IT OR LIST IT

But the team at Coulters know that the cost of buying and selling in Scotland is high, especially when you factor in LBTT, otherwise known as stamp duty. In fact, the LBTT on a £500,000 property is around an eye watering £23,000 which, let’s face it, can be more than the price of renovating in some cases.

“It is expensive to move, and for many it’s a major life decision, so we always advise ensuring you’re moving for the right reasons,” says Francesca. “Sometimes you already have the perfect home, it just needs some TLC.”

That might mean a serious declutter so you reclaim space. In fact, Zoë Berry of Edinburgh-based home organisation and decluttering business, Life/Edit Home Organisation, believes clutter has a negative energy.

“Clutter has a heavy energy and ‘noise’ which has a negative effect on mental health. Each room carries visual reminders of all the work that needs to be done, and it can be stressful just trying to leave the house in a rummage for keys, coats and shoes. Having guests over becomes an embarrassment or an event that takes all-day preparation.”

Francesca agrees. “Clutter can make a home look smaller, it creates the impression that there’s not enough storage space or that the home requires work when actually it may not. Some home owners may already have the space they need – it’s just hidden by clutter, or not utilised in the best way.

“Think like a buyer and make sure each area within the home has a defined purpose and that there’s a good flow through the home. Less furniture, better placed furniture and as much walkable space as possible can have a transformational effect.”

Still not sure where to start? Why not check out a new build show home video for inspiration on how to stage a home for a brand new feel.

Then there’s the fun part – decorating.

 

“Never underestimate the power of a fresh lick of paint - decorating can breathe new life into your existing home,” says Francesca. “Neutral tones are always more saleable but you can have fun with colour too – green is set to be huge in 2022.

“I always recommend an appointment with the colour experts to ensure it works for your existing space. Craig & Rose have a dedicated showroom in Edinburgh and a great colour consultancy.”

For soft furnishings and accessories inspiration, check out Jeffrey Interiors, Catalog and Homesense.

Francesca’s top tip: If you do decide to love the home you’re in, don’t blindly follow fashions and stay true to your style. Your home is your haven and you want it to feel a happy, tranquil space. Don’t be afraid to get the experts in to help you. From decluttering teams, interior architects to designers, these professionals can quickly transform your home – and how you feel about it.

Francesca Hill is a senior property valuer with Coulters Property. Thinking of selling your property with Coulters? Coulters are EGG card partners offering card holders £500 off and non-card holders £250 off conveyancing when you sell with them. To arrange a valuation just call 0131-603-7333!

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